The Solana network is booming, adding over 10 million new addresses and more than 8 million new investors. Solana’s position has been strengthened by a higher number of active addresses and a record supply of stablecoins on-chain.
The Solana network experienced one of its largest expansions ever, with active addresses doubling to over 5 million in January. Daily transaction volume is approximately 87 million, further boosting network activity and confirming Solana’s current momentum.
Stablecoin liquidity on Solana also expanded, with market reports estimating a total of $15 billion, and USD1 being the network’s largest player. These inflows translated into significant on-chain demand for SOL, as the token is needed to pay transaction fees and settle activity.
Solana’s market dynamics and growth
Despite the on-chain expansion, exchange position changes indicated that long-term holders have eased their buying pressure, offsetting some of the fresh demand. However, despite the increased network activity, the market indicates bearish patterns that could lead to a correction of around 9.5% in Solana’s value.
Furthermore, after almost two weeks, institutional flows with Solana-focused TFFs registered outflows of approximately $2.4 million.
Solana’s price reached $123, with some bullish scenarios estimating its growth to the $132-$136 range. However, everything depends on whether this surge on the network is sustained and whether long-term holders absorb the retail holdings.
For traders and ecosystem participants, the key variables are observable and short-term: whether the new directions translate into persistent on-chain activity and whether ETF and exchange flows stabilize.
